CommonBond Communities, Minnesota’s biggest developer-manager of affordable housing, said all five of its proposed low-income housing tax credit projects were fully funded by as part of last week’s commitment by the Minnesota Housing Finance Agency to invest $87.5 million in 1,700 new and existing housing units for low-income Minnesotans this year.
The agency funding will be used to build or renovate 1,343 apartments and 374 single-family homes to house people in 55 communities throughout the state. The beneficiaries range from the working poor, to the disabled and homeless. The state agency helps fund a variety of housing initiatives using a range of tools including grants, loans and tax credits.
“We deeply appreciate this funding support and the confidence in our work from the Minnesota Housing Finance Agency,” said Cecile Bedor, an executive vice president of CommonBond.
On Tuesday, Bedor said tax-credit sales to affluent individuals and institutions who benefit over a 10-year holding period, amount to 30-to-50 percent of the five-project financing.
Affordable housing projects by CommonBond and other nonprofit developers often can involve up to several types of private-and-public financing, from private mortgages to local-government grants and tax credits.
Also, CommonBond CEO Deidre Schmidt said an equity capital fund started recently by CommonFund to raise “patient capital” from investors willing to accept a modest or deferred return on their money has raised more than $4 million to date. Each dollar invested of that equity usually leverages about $8 in debt or other capital.
A portion of the CommonBond projects funded by Minnesota Housing are intended to house disabled and previously homeless people.
* The Willows, a 60-unit, $15.2 million complex in Shakopee.
* Trail Point Ridge, a 58-unit, $17.5 million project in Eden Prairie.
* Dublin Heights, a 45-unit, $10.8 million project in Mankato.
* Le Sueur Meadows, a 79-unit, $9.3 million project in Le Sueur.
* Community Plaza in Coon Rapids and Galway Place in St. Paul; a package project that totals 76 units that will cost $8.7 million to acquire and renovate.